Rohm and Hass

The required Volume at a retail price of Cr. 6.85 to give the same profit impact = 86,700 / 1.95 = 44,461.54 kg.

According to our analysis, So , c) is a betterthe optimal choice whichchoice, which confirmed our aggressive machine buying strategy since Day 135. And on Day 149, and Day 170, we immediately bought machine for station 2 and 1 again when the stationsit becomes bottle neck or when lead time is more than 0.28 which caused revenue decreased to $1,200.

The product cost per unit under absorption costing is $15.00 and under variable costing are 10.60.

Different retailing businesses have very different distribution methods based on the types of product that they sell, some arguably more effectively than others.

Write a 4-5 page paper in which you create a plan for a low-cost automated inventory system in which

e. On August 1, 2011, the company is paid $3,840 cash in advance to provide monthly service for an apartment complex for one year. The company began providing the services in August. When the cash was received, the full amount was credited to the Extermination Services Revenue account.

Write a 4-5 page paper in which you create a plan for a low-cost automated inventory system in which

To estimate variable costs, Tables F and I are needed. Table F shows the cost of goods sold averages 77.1% of sales (variable cost); Table I shows an average wholesale price for the seven competing brands of about $3.16 per six pack (about one gallon).

This suggests that Wilkerson’s traditional cost structure is fairly accurate when applied to valves. The accuracy of this cost method for Wilkerson’s initial product likely explains its continued use when the company expanded to pumps and flow controllers. Another factor that may be positively contributing to valve sales is the customer loyalty Wilkerson established due to its high-quality products.

Hence, the standard cost per ton for variable costs, as of the beginning of the year, was $650 per ton ($21,450/33).

        It is typically less expensive to make a new generation of technology backward compatible than to not make it backward compatible.

This is where the business produces in large quantities and distribute in bulk, this is so the customer/ business get the products cheaper as they will be bulk buying. A business that would do this is Walkers. They make thousands of packets and then sells

* The Pumps total product variable costs are $406,250, the Pumps total fixed costs are $316,501.94 and the Activity Based Costing Pumps cost per unit it $58.

1. What is the competitive situation faced by Wilkerson? The critical product in term of market competition is the pumps of Wilkerson Company. The pumps are Wilkersons major product line with a production of about 12,500 units per month. Pumps currently have the lowest gross margin among all products, because competitors had been reducing prices on pumps and Wilkerson adopted its prices in order to remain competitive and to maintain the volume. 2. Given some apparent problems with Wilkersons cost system, should executives abandon overhead assignment to products entirely by adopting a contribution margin approach in which manufacturing overhead is treated as a period expense? Our conclusion is, that they should not adopt

The overhead spending is greater than the direct labour costs or the direct material costs for all three product lines- Valves, Pumps and Flow Controllers (Exhibit 2). Overheads are simply charged at 185% constant for three diverse products. The fact that there is huge variance in the number of units produced per production run- it is 375 for valves and 18 for flow controllers per production run. This shows the reason for high overheads cost too. Hence it calls for checking the cost allocation system of the company.